Brexit is undoubtedly one of the most expensive political splits. For some time, everyone seems to have forgotten about it. However, Brexit has hit the headlines once again. Analysts state that the US economy has been losing roughly $124 billion a year after its exit from the EU in 2020. They fear that the figure may increase in the near future.
Back in 2016, following the results of the referendum, the UK clearly decided to leave the EU. The event has been widely discussed for several years before going into oblivion. However, a study conducted by analysts Anna Andrade and Dan Hanson made economists talk about the Brexit deal again. They also stress that the British economy is 4% smaller than it might have been if the country had stayed within the bloc. Former Prime Minister Boris Johnson triumphantly promised that Britain would be "prosperous, dynamic and contented" after exiting the European Union. However, the economic miracle did not occur.
"Did the UK commit an act of economic self-harm when it voted to leave the EU in 2016? The evidence so far still suggests it did. The main takeaway is that the rupture from the single market may have impacted the British economy faster than we, or most other forecasters, expected," the economists summed up.
However, it is difficult to accurately calculate the damage to the UK from Brexit due to losses incurred during the pandemic. Analysts argue that the country's economic indicators began to contract compared to other G7 states immediately after the start of the Brexit saga. According to the Center for European Reforms, there are currently 330,000 fewer EU workers in the country due to new immigration restrictions. This is 1% of all workers. "Scarcity of labor adds to inflationary pressure in the short-term and constrains potential growth further out," the economists wrote.
